NITDA tasks financial institutions on innovative ways to improve SMEs lending rates

Na'ankwat Dariem

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The Director General, National Information Technology Development Agency, NITDA, Kashifu Inuwa  has called on financial institutions in the country to  improve lending rate for Small and Medium  Enterprise especially Financial Technology (FinTech) startups

He emphasised  that this would  promote financial inclusiveness in the country.

Inuwa disclosed this in a Webinar conference organised by FinTech Association of Nigeria with the theme: COVID-19: Enabling Speedy Business and Economic Recovery Through Regulations.

He noted that traditional banks’ lending process has long been a barrier to accessing finance for SMEs in Nigeria which is impacting the operations of the SMEs, adding that the banks need to come up with innovative ideas to assist vulnerable SMEs in the era of COVID-19 that is plaguing the world“the COVID-19 pandemic has disproportionately impacted SMEs around the world, Nigeria inclusive. Traditional bank lending process has long been a barrier to accessing finance for SMEs in Nigeria, Inuwa noted .

He, however, said that government is providing different types of interventions and palliatives but Financial Technology is not being employed optimally for disbursement“Our interventions are to help lead the tech startups from crisis to recovery as well as support them to navigate today’s challenging business landscape,The DG reiterated .

While reiterating the promise of president Muhammadu Buhari Administration to lift 100 million Nigeria out of poverty in 10 years, the DG expressed optimism that government would support investment in startups to create jobs and future prosperity for all.

He explained that, NITDA as an Information Technology regulator in the country with a mandate to regulate and develop the sector, had designed initiatives meant to provide a secure base for startup ecosystem with inclusion of FinTech startups. Adding that, immediately the government pronounced the lockdown, NITDA constituted a 10-man committee named Tech4Covid with objectives to  identify innovative solutions to address the pandemic; provide enabling policies and incentives to cushion the impact of the pandemic; and build massive digital skills to reskill the region to leverage technology in different sectors

On funding for the innovative ideas of the startups, the NITDA DG recalled that the Minister of Communications and Digital Economy, Dr Isa Ali Ibrahim Pantami had directed all parastatals under the supervision of the ministry to set up an Innovation Research Fund for the startups, and NITDA is equally working with Bank of Industry, BOI, to give consideration to I T startups in accessing funding.

Inuwa further stated that the Agency is also supporting the IT hubs in the country by implementing the recommendations submitted by Tech4Covid committee on hubs’ support during and after the pandemic has also  developed innovation porter that would serve as database for innovation and entrepreneurship ecosystem.

He listed some of the policies the government has put in place to assist the startups to include the NationalOutsourcing Strategic policy, Nigeria Data Protection Regulation, Reviewing of Framework and Guideline for the Use of Digital Platform by Federal Public Institutions, and the National Cyber Security Policy ,Inuwa stated.

One of the  Speakers at the webinar and Chairman, Africa FinTech Network, Segun Aina,  maintained that the agency has a great pillar of support which has been reliable in providing fund for FinTech in Nigeria. “Although most of the funding come from outside the country but regulatory agencies like NITDA have been very helpful in assisting the FinTech industry” ,He said.

He said that the Association is embarking on advocacy and support for the startups in 32 African countries and assisting them to access funding from organisation like African Development Bank.

Another speaker, Mr. Sopnendu Moharty,  reiterated that African needs to prioritize the new normal by leving that “COVID-19 has given us opportunity to rethink.

He said, for economy to survive the pandemic, there is need for people to leverage on IT. “We need to digitise everything and you can’t argue with the fact that if you don’t digitise you will die,” Moharty concluded.

DG reiterated .

While reiterating the promise of president Muhammadu Buhari Administration to lift 100 million Nigeria out of poverty in 10 years, the DG expressed optimism that government would support investment in startups to create jobs and future prosperity for all.

He explained that, NITDA as an Information Technology regulator in the country with a mandate to regulate and develop the sector, had designed initiatives meant to provide a secure base for startup ecosystem with inclusion of FinTech startups. Adding that, immediately the government pronounced the lockdown, NITDA constituted a 10-man committee named Tech4Covid with objectives to  identify innovative solutions to address the pandemic; provide enabling policies and incentives to cushion the impact of the pandemic; and build massive digital skills to reskill the region to leverage technology in different sectors

On funding for the innovative ideas of the startups, the NITDA DG recalled that the Minister of Communications and Digital Economy, Dr Isa Ali Ibrahim Pantami had directed all parastatals under the supervision of the ministry to set up an Innovation Research Fund for the startups, and NITDA is equally working with Bank of Industry, BOI, to give consideration to I T startups in accessing funding.

Inuwa further stated that the Agency is also supporting the IT hubs in the country by implementing the recommendations submitted by Tech4Covid committee on hubs’ support during and after the pandemic has also  developed innovation porter that would serve as database for innovation and entrepreneurship ecosystem.

He listed some of the policies the government has put in place to assist the startups to include the NationalOutsourcing Strategic policy, Nigeria Data Protection Regulation, Reviewing of Framework and Guideline for the Use of Digital Platform by Federal Public Institutions, and the National Cyber Security Policy ,Inuwa stated.

One of the  Speakers at the webinar and Chairman, Africa FinTech Network, Mr. Segun Aina,  maintained that the agency has a great pillar of support which has been reliable in providing fund for FinTech in Nigeria. “Although most of the funding come from outside the country but regulatory agencies like NITDA have been very helpful in assisting the FinTech industry” ,He said.

He said that the Association is embarking on advocacy and support for the startups in 32 African countries and assisting them to access funding from organisation like African Development Bank.

Another speaker, Sopnendu Moharty,  reiterated that African needs to prioritize the new normal by leving that “COVID-19 has given us opportunity to rethink.

He said, for economy to survive the pandemic, there is need for people to leverage on IT. “We need to digitise everything and you can’t argue with the fact that if you don’t digitise you will die,” Moharty said.

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